Tax breaks

2020 snapshot

Exemptions, deductions and exclusions

The Department of Revenue hasn’t updated this study since 2020. These are its estimates for tax year 2020 (property tax: 2018 assessments). Iowa has since cut income tax rates to one flat rate and stopped taxing retirement income, so the income tax figures, especially, are out of date².

Every break in the study

128 breaks in individual income tax; the 80 costing the most are shown.

• Federal Deductibility$821.6M
  Individual income tax · Deduction · Administrative · Iowa Code 422.9(2)(b)Federal income taxes paid during the tax year may be deducted from Iowa income subject to tax. Deductible federal income taxes include: (1) federal income tax withheld from compensation during the tax year, (2) federal estimated tax paid at any time during the tax year, (3) any additional federal tax on a prior …
• Pension Contributions and Earnings in 401 (k) Plans$649.4M
  Individual income tax · Exclusion · Retirement Support · Iowa Code 422.3(5), 422.7Individual taxpayers can make tax-preferred contributions to certain types of employer provided 401(k) plans and 401(k)-type plans like 403(b) plans and the Federal government’s Thrift Savings Plan.
• Indexation of the Tax Brackets$565.0M
  Individual income tax · Indexation · Administrative · Iowa Code 422.4(1), 422.5(6), 422.21(5)The tax brackets for a given tax year equal the statutory amount (the tax year 1988 tax brackets) multiplied by a cumulative inflation factor.
• Pension Contributions and Earnings in Employer Plans$525.4M
  Individual income tax · Exclusion · Retirement Support · Iowa Code 422.3(5), 422.7Certain employer contributions to pension plans are excluded from an employee’s income subject to tax even though the employer can also deduct the contributions. Those contributions and any investment income earned by the pension plans is taxed when the funds are withdrawn.
• Capital Gain-Home Sales Exclusion$145.2M
  Individual income tax · Exclusion · Individual Benefit · Iowa Code 422.3(5), 422.7Any gain from the sale or exchange of personal residential property is excluded from income subject to tax if, during the 5-year period ending on the date of the sale or exchange, the property has been owned and used by the taxpayer as the taxpayer’s principal residence for at least two years.
• Itemized Deduction for Interest Paid$128.0M
  Individual income tax · Deduction · Individual Benefit · Iowa Code 422.3(5), 422.9Taxpayers who itemize deductions may deduct from income subject to tax certain types of interest payments including home mortgage interest paid, mortgage insurance premiums, and investment interest paid.
• Out-Of-State Tax Credit$124.8M
  Individual income tax · Credit · Administrative · Iowa Code 422.8(1)Iowa residents are allowed an out-of-state tax credit for taxes paid to another state or foreign country on income which is also reported on the taxpayer's Iowa return. The out-of-state tax credit is allowable only on income earned while an Iowa resident.
• Pension/Retirement Income Exclusion$107.6M
  Individual income tax · Deduction · Retirement Support · Iowa Code 422.7(31)A taxpayer who is fifty-five years of age or older, disabled, or is the surviving spouse, son, daughter, mother, father, or other person with an insurable interest in an individual who would have qualified for the partial pension exclusion, is eligible to deduct from income subject to tax a portion of pension or …
• Itemized Deduction for Gifts to Charity$107.5M
  Individual income tax · Deduction · Charitable Organization Support · Iowa Code 422.3(5), 422.9Taxpayers who itemize deductions may deduct from income subject to tax cash or in-kind contributions to qualified nonprofit, charitable organizations. Taxpayers who drove for volunteer purposes may also deduct the actual cost of the gas and oil, or 14 cents per mile driven.
• Itemized Deduction for Taxes on Owner-Occupied Property$105.7M
  Individual income tax · Deduction · Individual Benefit · Iowa Code 422.3(5), 422.9Taxpayers who itemize deductions may deduct from income subject to tax property taxes paid on their primary and secondary residences.
• Pension Earnings in Individual Retirement Accounts$90.9M
  Individual income tax · Exclusion · Retirement Support · Iowa Code 422.3(5), 422.7The investment income earned on tax exempt contributions into traditional Individual Retirement Accounts (IRA’s) is excluded from income subject to tax until the income is withdrawn. Investment income earned on after-tax contributions into Roth IRA’s is permanently excluded from income subject to tax.
• Personal Exemption Credit$77.0M
  Individual income tax · Credit · Individual Benefit · Iowa Code 422.12(2)(a)Personal exemption credits may be deducted from tax, but cannot reduce the tax below $0. Personal credits vary by filing status with $40 allowed for single filers, $80 for married taxpayers filing jointly, $40 for married filing separately on separate returns or for each spouse filing separately on combined returns, …
• Nonresident/Part-Year Resident Tax Credit$75.3M
  Individual income tax · Credit · Administrative · Iowa Code 422.8(2)(a)An individual who is a nonresident of Iowa for the entire tax year or for part of the tax year is allowed a credit against the individual's Iowa income tax liability for the Iowa income tax on the portion of the individual's income which was earned outside Iowa while the taxpayer was a nonresident of Iowa.
• Standard Deduction$71.9M
  Individual income tax · Deduction · Individual Benefit · Iowa Code 422.9(1)Taxpayers are allowed to deduct from income subject to tax a standard deduction which varies by filing status. In 1989, the standard deduction amounts were set at $3,030 for a married couple filing jointly, a qualifying widow(er) or unmarried head of household and $1,230 for a married person filing separately or a …
• Itemized Deduction for State Sales Tax in Lieu of Income Tax$68.0M
  Individual income tax · Deduction · Government · Iowa Code 422.9(2)(i)Taxpayers who itemize deductions can deduct from income subject to tax State sales and use taxes paid if the taxpayer elected to deduct State sales and use taxes in lieu of State income taxes on their federal return.
• Standard Deduction-Indexation$53.1M
  Individual income tax · Indexation · Individual Benefit · Iowa Code 422.4(2), 422.9(1), 422.21(5)The standard deduction amounts established in 1989 are multiplied by the current cumulative inflation factor. Each tax year, a new cumulative inflation factor is determined by multiplying the prior year’s cumulative inflation factor by a newly calculated annual inflation factor.
• Pension Earnings in Self Employed Retirement Plans$40.7M
  Individual income tax · Exclusion · Retirement Support · Iowa Code 422.3(5), 422.7Investment income earned in self-employed retirement (Keogh) plans is excluded from income subject to tax in the year it is earned. The income is subject to tax when the funds are withdrawn
• Workers' Compensation Benefits$36.0M
  Individual income tax · Exclusion · Individual Benefit · Iowa Code 422.3(5), 422.7Benefits received by an employee under a workers’ compensation act providing compensation to employees for personal injuries or sickness incurred in the course of employment are excluded from income subject to tax.
• Dependent Exemption Credit$32.7M
  Individual income tax · Credit · Family Support · Iowa Code 422.12(2)(a)(3)A tax credit of $40 is allowed for each dependent claimed on the return. Credits are nonrefundable, meaning claims may not exceed the computed tax. Dependent has the same meaning as provided by the Internal Revenue Code;
• Alternative Minimum Tax Exemption$32.4M
  Individual income tax · Exemption · Administrative · Iowa Code 422.5(2)(b)(2)In determining the individual minimum tax, which is imposed to the extent that it exceeds regular tax liability, minimum taxable income is reduced by an exemption before application of the tax.
• Health Insurance$30.2M
  Individual income tax · Deduction · Individual Benefit · Iowa Code 422.7(29)Taxpayers may deduct from income subject to tax amounts paid by a taxpayer for health insurance for the taxpayer, the taxpayer's spouse, and the taxpayer's dependents to the extent the amounts paid are not otherwise deductible for Iowa tax purposes. Amounts paid on a pretax basis may not be deducted.
• Capital Gain-Carryover Basis of Gifts$25.6M
  Individual income tax · Exclusion · Individual Benefit · Iowa Code 422.3(5), 422.7When property is gifted, the tax basis for the gift equals the cost that was paid when the transferred property was first acquired by the donor plus an allowance for any gift taxes paid on the gift.
• Military Disability Pensions$23.2M
  Individual income tax · Exclusion · Military/Veterans' Support · Iowa Code 422.3(5), 422.7Taxpayers may exclude from income subject to tax amounts received as a pension, annuity, or similar allowance for personal injuries or sickness resulting from active service in: (1) the armed forces of any country; (2) the National Oceanic and Atmospheric Administration (NOAA) (formerly the Coast and Geodetic Survey);
• Exemption for Military Pensions$17.9M
  Individual income tax · Exemption · Military/Veterans' Support · Iowa Code 422.7Veterans are no longer required to pay income tax on their retirement pay. The pay is not included as income in determining whether they need to file a return and is not included in the calculation of the Iowa Alternate Tax.
• Pension Contributions in Individual Retirement Accounts$17.5M
  Individual income tax · Deduction · Retirement Support · Iowa Code 422.3(5), 422.7Individual taxpayers age 70 ½ or under can annually contribute to a traditional Individual Retirement Account (IRA) up to $5,000 in 2010 ($6,000 in 2010 if age 50 or older).
• Itemized Deduction for Medical and Dental Expenses$17.2M
  Individual income tax · Deduction · Individual Benefit · Iowa Code 422.3(5), 422.9Taxpayers who itemize deductions may deduct from income subject to tax medical and dental expenses paid during the taxable year that are not reimbursed to the extent that such expenses exceed 7.5 percent of adjusted gross income.
• Itemized Deduction for Personal Property and Other Taxes$12.6M
  Individual income tax · Deduction · Individual Benefit · Iowa Code 422.3(5), 422.9Taxpayers who itemize deductions may deduct from income subject to tax personal property taxes, including annual vehicle registration fees and other taxes paid, including taxes paid to foreign governments.
• Student Loan Interest$12.4M
  Individual income tax · Deduction · Education Support · Iowa Code 422.3(5), 422.7Taxpayers may deduct from income subject to tax up to $2,500 of interest paid on an education loan from income subject to tax.
• Military Active Duty Pay Exemption$10.4M
  Individual income tax · Exemption · Military/Veterans' Support · Iowa Code 422.7All pay received from the federal government for military services performed by members in an active duty status of the regular armed forces (Army, Navy, Marines, Air Force and Coast Guard), armed forces military reserves, and national guard is exempt from Iowa individual income tax to the extent that the military pay …
• Pension Contributions to Self Employed Retirement Plans$7.0M
  Individual income tax · Deduction · Retirement Support · Iowa Code 422.3(5), 422.7Self-employed individuals can deduct from income subject to tax contributions to their own retirement (Keogh) plans equal to 25 percent of their compensation up to a maximum of $49,000 for tax year 2010.
• Health Savings Account Contributions$5.4M
  Individual income tax · Deduction · Individual Benefit · Iowa Code 422.3(5), 422.7A taxpayer exclusively covered by a Health Savings Account (HSA), defined as a high deductible plan with a minimum deductible of $1,200 for self-coverage or $2,400 for family coverage, may deduct from income subject to tax contributions to the HSA.
• Elderly Personal Credit$4.5M
  Individual income tax · Credit · Individual Benefit · Iowa Code 422.12(a)(4)An exemption credit of $20, in addition to the personal or blind exemption credit, is allowed for each taxpayer who is 65 years of age on or before the first day following the end of the tax year. A nonresident taxpayer or part-year resident may deduct exemption credits as if they were residents for the entire year.
• Itemized Deduction for School District and EMS Surtaxes$3.8M
  Individual income tax · Deduction · Government · Iowa Code 422.3(5), 422.9Taxpayers who itemize deductions may deduct from income subject to tax Iowa school district and emergency medical services (EMS) income surtaxes paid. These taxes are not Iowa State income taxes which cannot be deducted.
• Individual Retirement Account Contributions$3.7M
  Individual income tax · Deduction · Retirement Support · Iowa Code 422.3(5), 422.7Individual taxpayers age 70 ½ or under could annually contribute to a traditional Individual Retirement Account (IRA) up to $5,000 in 2010 ($6,000 if age 50 or older) and deduct that contribution from income subject to tax.
• Itemized Deduction for Tax Paid to Other States$3.6M
  Individual income tax · Deduction · Individual Benefit · Iowa Code 422.3(5), 422.9Nonresident and part-year resident taxpayers who itemized deductions may deduct from income subject to tax Income taxes paid to states other than Iowa.
• Capital Gain- Small Business Stock$3.5M
  Individual income tax · Exclusion · Business Incentive · Iowa Code 422.3(5), 422.7A non-corporate taxpayer can exclude from income subject to tax 50 percent of any gain from the sale or exchange of qualified small business stock held for more than five years. The gain eligible for the 50 percent exclusion may not exceed the greater of $10 million or 10 times the taxpayer's basis in the stock.
• Fuel Tax Credit$3.0M
  Individual income tax · Credit · Consumer BenefitAn income tax credit is allowed for the amount of Iowa fuel tax paid relating to purchases for off-road use made by individuals and corporations. The State also offers taxpayers the option of claiming refunds for fuel tax on exempt purchases.
• Iowa Capital Gains Deduction for Business Assets$2.8M
  Individual income tax · Deduction · Business Incentive · Iowa Code 422.7(21)Taxpayers may deduct from income subject to tax capital gains on the sale of select types of non-agricultural business property located in Iowa.
• Solvent Farmer Discharge of Debt$2.4M
  Individual income tax · Exclusion · Agriculture Support · Iowa Code 422.3(5), 422.7Income arising from the discharge of qualified farm indebtedness owed to an unrelated lender, including a federal, state, or local government or agency, or instrumentality thereof, may be excluded from a taxpayer's income subject to tax if certain requirements are met.
• Foreign Income Exclusion$900K
  Individual income tax · Deduction · Administrative · Iowa Code 422.3(5), 422.7A qualified individual may elect to exclude from income subject to tax up to $91,500 of foreign earned income in 2010 and employer-provided housing costs.
• Blind Personal Credit$700K
  Individual income tax · Credit · Individual Benefit · Iowa Code 422.12(2)(a)(5)A tax credit of $20, in addition to the personal exemption or elderly credit, is allowed for a taxpayer who is blind at the end of the tax year. A nonresident taxpayer or part-year resident may deduct exemption credits as if they were residents for the entire year.
• Itemized Deduction for Other Iowa Only Miscellaneous Deductions$700K
  Individual income tax · Deduction · Individual Benefit · Iowa Code 422.9(2)Iowa taxpayers may deduct additional miscellaneous expenses from income subject to tax even though such deductions are not allowed on the federal return.
• Educator Expense$600K
  Individual income tax · Deduction · Education Support · Iowa Code 422.3(5), 422.7Expenses up to $250 paid or incurred by an eligible educator in connection with books, supplies (other than nonathletic supplies for courses of instruction in health or physical education), computer equipment (including related software and services), other equipment, and supplementary materials used by the eligible …
• Black Lung Trust Fund Payments to Coal Miners$200K
  Individual income tax · Exclusion · Individual Benefit · Iowa Code 422.3(5), 422.7Disability payments to former coal miners out of the Black Lung Trust Fund are excluded from income subject to tax. The purpose of the Black Lung Trust Fund is to provide benefits, in cooperation with the states, to coal miners who are totally disabled due to pneumoconiosis (black lung disease) and to the surviving …
• Disability Income Exclusion$200K
  Individual income tax · Deduction · Individual Benefit · Iowa Code 422.7(5)Taxpayers who are permanently and totally disabled and have not attained age 65 or reached mandatory retirement age associated with their prior job by the end of the tax year, can deduct from income subject to tax a maximum of $100 per week of disability payments.
• Capital Gain-Eminent Domain$100K
  Individual income tax · Deduction · Individual Benefit · Iowa Code 422.7(49)A deduction from income subject to tax is provided for the amount of ordinary or capital gain realized by the taxpayer as a result of the involuntary conversion of property due to eminent domain.
• Capital Gains Income from Distressed Sales$100K
  Individual income tax · Deduction · Individual Benefit · Iowa Code 422.7(16)Gains from sales, exchanges, or transfers of property are deducted from income subject to tax if the gains are considered to have resulted from a distressed sale transaction.
• Iowa Able Savings Plan Trust$100K
  Individual income tax · Exemption · Consumer Benefit · Iowa Code 12D.9An Iowa ABLE (Achieving a Better Life Experience) savings plan is created as part of the federal Tax Increase Prevention Act of 2014. Allows states to create programs to assist individuals in saving private funds for the purpose of supporting individual with disabilities.
• Itemized Deduction for Casualty and Theft Losses$100K
  Individual income tax · Deduction · Individual Benefit · Iowa Code 422.3(5), 422.9Taxpayers who itemize deductions may deduct from income subject to tax non-business losses arising from a fire, storm, flood, or similar cause, theft or vandalism, car, or boat and other accidents.
• Work Opportunity Credit$100K
  Individual income tax · Deduction · Business Incentive · Iowa Code 422.7(8)The Federal Work Opportunity Credit replaced the Federal Targeted Jobs Tax Credit. The program provides a tax credit for employers who hire certain targeted groups including low income individuals, vocational rehabilitation referrals, former AFDC recipients, veterans, ex-felons, food stamp recipients, and SSI …
• Agricultural Cost-Sharings PaymentsNot estimated
  Individual income tax · Exclusion · Agriculture Support · Iowa Code 422.3(5)Agricultural cost-sharing payments may be excluded in whole or in part from income subject to tax if three conditions are met: The United States Secretary of Agriculture certifies that the payment services to conserve soil and water resources, improve forests, or provide a habitat for wildlife;
• Alcohol Fuel Credit DeductionMinimal
  Individual income tax · Deduction · Business Incentive · Iowa Code 422.7(9)The federal alcohol fuels credit, as provided in Section 40 of the Internal Revenue Code, is a deduction from Iowa income subject to tax to the extent that use of the federal credit increased Iowa income subject to tax.
• Capital Gain-Stepped-Up Basis at DeathNot estimated
  Individual income tax · Exclusion · Administrative · Iowa Code 422.3(5), 422.7Capital gains on assets held at the owner's death are excluded from income subject to tax. The basis of any property, real or personal, acquired from a decedent is its fair market value on the date of the decedent's death or within six months of the death.
• Clean Fuel Vehicles and Refueling PropertyNot estimated
  Individual income tax · Exclusion · Natural Resources Support · Iowa Code 422.3(4), 422.7(45)Up to $2,000 of the cost of a clean fuel motor vehicle up to 10,000 pounds can be excluded from income subject to tax. The allowed exclusion is up to $5,000 of the cost of a truck or van with a gross vehicle weight above 10,000 pounds and not exceeding 26,000 pounds.
• Coverdell Education Savings AccountNot estimated
  Individual income tax · Exclusion · Education Support · Iowa Code 422.3(5), 422.7Individuals may contribute up to $2,000 per beneficiary per year to a Coverdell Education Savings Account (ESA). Although contributions are not excludable, investment income is not subject to tax when earned and withdrawals of investment income used for qualified educational expenses prior to the beneficiary attaining …
• Deductible Portion of Self-Employment TaxNot estimated
  Individual income tax · Deduction · Administrative · Iowa Code 422.3(5), 422.7Self-employed taxpayers must pay both the employer and employee portion of Social Security and Medicare payroll taxes. One-half of the self-employment payroll taxes, equal to the employer portion, can be deducted from income subject to tax.
• Early Retirement Withdrawal by Guard or Reserve MembersNot estimated
  Individual income tax · Exclusion · Military/Veterans' Support · Iowa Code 422.7(38)For tax years beginning on or after January 1, 2002, members of the Iowa National Guard or members of military reserve forces of the United States who are ordered to state military service or federal service or duty who receive distributions during the tax year from qualified retirement plans do not need to include …
• Employee Achievement AwardsNot estimated
  Individual income tax · Exclusion · Individual Benefit · Iowa Code 422.3(5), 422.7Employees may exclude from income subject to tax any employee achievement awards of tangible personal property received from an employer in recognition of length of service or safety achievement.
• Employee Fringe Benefit-Cafeteria PlansNot estimated
  Individual income tax · Exclusion · Individual Benefit · Iowa Code 422.3(5), 422.7Benefits chosen from employer cafeteria plans are excluded from income subject to tax to the extent allowed by law for the separate benefits.
• Employee Fringe Benefit-Child CareNot estimated
  Individual income tax · Exclusion · Family Support · Iowa Code 422.3(5), 422.7Dependent care assistance benefits under a qualifying program up to $5,000 a year ($2,500 in the case of a married individual filing a separate return) are excluded from income subject to tax.
• Employee Fringe Benefit-Disability InsuranceNot estimated
  Individual income tax · Exclusion · Individual Benefit · Iowa Code 422.3(5), 422.7Premiums paid by the employer under an insurance policy providing for replacement payments to the employee in the event he becomes sick or disabled are excluded from employee’s income subject to tax.
• Employee Fringe Benefit-Education AssistanceNot estimated
  Individual income tax · Exclusion · Education Support · Iowa Code 422.3(5), 422.7Payments received by an employee for tuition, fees, books, supplies and similar items under an employer's educational assistance program are excluded from income subject to tax up to a maximum of $5,250. The exclusion does not cover graduate teaching or research assistants who receive tuition reduction.
• Employee Fringe Benefit-Life InsuranceNot estimated
  Individual income tax · Exclusion · Individual Benefit · Iowa Code 422.3(5), 422.7The cost of life insurance premiums paid by an employer for coverage up to $50,000 is excluded from income subject to tax provided certain nondiscrimination rules are followed. The cost of any amount of coverage in excess of $50,000 is included in income subject to tax.
• Employee Fringe Benefit-Medical InsuranceNot estimated
  Individual income tax · Exclusion · Individual Benefit · Iowa Code 422.3(5), 422.7Employer paid health insurance premiums including long-term care are deducted as a business expense by employers, and they are excluded from employee income subject to tax.
• Employee Fringe Benefit-Miscellaneous Non-CashNot estimated
  Individual income tax · Exclusion · Individual Benefit · Iowa Code 422.3(5), 422.7Several miscellaneous non-cash benefits are excluded from employee's income subject to tax including: (1) no additional cost services (free standby flights by airlines to employees), (2) qualified employee discounts, (3) working condition fringe benefits (use of company car for business purposes), (4) de minims fringe …
• Employee Fringe Benefit-Parking Expense PaidNot estimated
  Individual income tax · Exclusion · Individual Benefit · Iowa Code 422.3(5), 422.7Employee parking expenses that are paid for by the employer and are received in lieu of wages are excluded from employee's income subject to tax. The maximum amount allowed in 2010 is $230 per month.
• Employee Fringe Benefit-Transit Pass ExpensesNot estimated
  Individual income tax · Exclusion · Individual Benefit · Iowa Code 422.3(5), 422.7Transit passes, tokens, fare cards, and van pool expenses paid for by an employer and received in lieu of wages to defray an employee's commuting costs are excluded from employee's income subject to tax. In 2010, the maximum amount of the exclusion is $125 per month.
• Employee Meals and LodgingNot estimated
  Individual income tax · Exclusion · Individual Benefit · Iowa Code 422.3(5), 422.7Employer provided meals and lodging for the convenience of the employer are excluded from an employee's income subject to tax even though the employer's costs for these items are deductible as a business expense.
• Employment Stock Ownership (ESOP)Not estimated
  Individual income tax · Exclusion · Business Incentive · Iowa Code 422.3(5), 422.7Employee Stock Ownership Plans (ESOPs) are a special type of tax exempt employee benefit plan intended to encourage employee ownership.
• Federal Employees Abroad AllowancesNot estimated
  Individual income tax · Exclusion · Administrative · Iowa Code 422.3(5), 422.7Allowances received by federal civilian employees and Peace Corps members stationed outside the continental United States in accordance with regulations approved by the President are excluded from income subject to tax.
• Foster Care PaymentsNot estimated
  Individual income tax · Exclusion · Family Support · Iowa Code 422.3(5), 422.7Foster parents provide under a contract with the State a home and care for children who are wards of the State. Compensation received for this service is excluded from income subject to tax unless the payments are received for more than ten persons under age 19 or more than five over age 18.
• Gains from Sales on Municipal BondsNot estimated
  Individual income tax · Exclusion · Government · Iowa Code 422.7(36)Income from the sale of obligations of the State of Iowa and its political subdivisions shall be added to Iowa net income to the extent not already included.
• Health Insurance Non-Qualified DependentsNot estimated
  Individual income tax · Deduction · Individual Benefit · Iowa Code 422.7(29)(a)The value of health insurance coverage received by including on a health insurance plan a dependent under age 25 who is not claimed on the taxpayer's federal or Iowa tax return can be deducted from income subject to tax.
• Holocaust Victims IncomeNot estimated
  Individual income tax · Exclusion · Individual Benefit · Iowa Code 217.39, 422.7(35)Income payments received by individuals because they were victims of the Holocaust or income payments received by individuals who are heirs of victims of the Holocaust are excluded in the computation of net income to the extent the payments were included in the individuals’ federal adjusted gross income.
• Income Tax Reciprocity and Withholding Exemption for Utility WorkersMinimal
  Individual income tax · Exemption · Business Incentive · Iowa Code 422.7(57)If utility worker performing emergency response work for an electric utility in Iowa under a mutual aid agreement between Iowa the other state the income earned in Iowa is exempt from Iowa and the utility worker is not subject to Iowa withholding
• Injured Veterans Grant Program Contributions and GrantsMinimal
  Individual income tax · Deduction · Military/Veterans' Support · Iowa Code 35A.14Contributions to and grants from the Injured Veterans Grant Program are deducted from income subject to tax. The Injured Veterans Grant Program is to provide immediate financial assistance to a veteran so that family members of the veteran may be with the veteran during the veteran’s recovery from an injury received …
• Insurance Reimbursed Living ExpensesNot estimated
  Individual income tax · Exclusion · Individual Benefit · Iowa Code 422.3(5), 422.7A taxpayer whose residence is damaged or destroyed by fire, storm, or other casualty and who must temporarily occupy another residence during the repair can exclude from income subject to tax any insurance payments received as reimbursement for living expenses during that period.
• Interest-Beginning Farmer BondsNot estimated
  Individual income tax · Exclusion · Government · Iowa Code 175.12, 175.17, 422.7(19), 16.75Interest from bonds or notes issued by the Agricultural Development Authority, (now the Iowa Finance Authority) to finance the beginning farmer loan program is exempt from the State individual and corporate income subject to tax. Also, the bond interest cannot be taxed for inheritance tax purposes.
• Interest-State ExemptNot estimated
  Individual income tax · Exclusion · Government · Iowa Code 422.7(2), 422.35Interest on a selected list of bonds and notes issued by various state and local government entities are specifically exempt from the state individual and corporate income subject to tax. These bonds include, Vision Iowa Program Bonds; School Infrastructure Program Bonds; Iowa Jobs Program Bonds;
• Iowa Capital Gains Deduction for Agricultural AssetsNot estimated
  Individual income tax · Deduction · Agriculture Support · Iowa Code 422.3(5), 422.7Taxpayers may deduct from income subject to tax capital gains on the sale of select types of agricultural property located in Iowa.